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Looking for an unique answer, not just a copy and past from another answer online. 2. Imagine a small household in a developing country that
Looking for an unique answer, not just a copy and past from another answer online.
2. Imagine a small household in a developing country that produces soybeans using labor. Their production function for making soybeans is: f(() = 1. The price of labor is $2 an hour. The price of soybeans is inherently instable due to the unpredictable weather patterns in neighboring countries that could influence the supply (and thus the market price) of soybeans. True or false: there is some price such that the household makes an infinite amount of profit (ie. there is no solution consistent with perfect competition). Explain using you knowledge of production theory to identify the range of prices where this is true or provide a convincing argument that the statement is not trueStep by Step Solution
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